ReneSola Ltd. Announces Third Quarter 2012 Results
JIASHAN, China, Nov. 30, 2012 /PRNewswire/ -- ReneSola Ltd
("ReneSola" or the "Company") (NYSE: SOL), a leading global
manufacturer of solar photovoltaic ("PV") modules and wafers, today
announced its unaudited financial results for the third quarter
ended September 30, 2012.
(Logo:
http://photos.prnewswire.com/prnh/20080506/CNTU030 )
Third Quarter 2012 Financial and Operating Highlights
- Total solar wafer and module shipments in Q3 2012 were 532.8
megawatts ("MW"), exceeding Company guidance and representing an
increase of 5.8% from 503.7 MW in Q2 2012.
- Q3 2012 net revenues were US$218.2
million, meeting Company guidance and representing a
decrease of 6.4% from US$233.0
million in Q2 2012.
- Q3 2012 gross loss was US$39.2
million with a gross margin of negative 18.0%, which
included a US$31.6 million write-down
for inventory, compared to a gross profit of US$1.3 million with a gross margin of 0.6% in Q2
2012.
- Q3 2012 operating loss was US$82.8
million with an operating margin of negative 38.0%, compared
to an operating loss of US$34.6
million with an operating margin of negative 14.9% in Q2
2012.
- Q3 2012 net loss was US$78.6
million, representing basic and diluted loss per share of
US$0.46 and basic and diluted loss
per American depositary share ("ADS") of US$0.91.
- Cash and cash equivalents plus restricted cash were
US$335.2 million as of the end of Q3
2012, compared to US$394.2 million as
of the end of Q2 2012.
"While we delivered record shipments in the third quarter,
declining selling prices and the substantial supply-demand
imbalance continued to have a large impact on our margins," said
Mr. Xianshou Li, ReneSola's chief executive officer. "Nevertheless,
we continued to drive down costs and improve efficiency through
strong management and a dedicated R&D team. Over the year,
we've leveraged our core competitive strength in wafer
manufacturing and technology to develop highly efficient solar
modules that have attracted customers in a number of markets, most
notably Europe and Australia, and also the United States and China. Despite the difficult market conditions
impacting the industry, we are confident in our ability to lower
costs and develop superior technology that will grow our solar
module business in both the near and long term."
Third Quarter 2012 Results
Solar Wafer and Module Shipments
|
3Q12
|
2Q12
|
3Q11
|
Q-o-Q%
|
Y-o-Y%
|
Total
Solar Wafer and Module Shipments (MW)
|
532.8
|
503.7
|
328.5
|
5.8%
|
62.2%
|
Solar
Wafer Shipments (MW)
|
387.5
|
344.0
|
294.8
|
12.6%
|
31.4%
|
Solar
Module Shipments (MW)
|
145.3
|
159.7
|
33.7
|
(9.0%)
|
331.2%
|
The sequential increase in solar product shipments was mainly
the result of an increase in the demand of the Company's
high-efficiency solar wafers from Asia-Pacific customers.
Net Revenues
|
3Q12
|
2Q12
|
3Q11
|
Q-o-Q%
|
Y-o-Y%
|
Net
Revenues (US$mln)
|
$218.2
|
$233.0
|
$189.1
|
(6.4%)
|
15.4%
|
Revenues in Q3 2012 decreased quarter over quarter due to a
decrease in the average selling prices ("ASPs") of solar wafers and
modules to US$0.28 per watt ("W") and
US$0.67/W, respectively.
Gross Profit (Loss)
|
3Q12
|
2Q12
|
3Q11
|
Q-o-Q%
|
Y-o-Y%
|
Gross
Profit (Loss) (US$mln)
|
($39.2)
|
$1.3
|
($7.7)
|
-
|
-
|
Gross
Margin
|
(18.0%)
|
0.6%
|
(4.0%)
|
-
|
-
|
The sequential decrease in gross profit was primarily due to an
inventory write-down of US$31.6
million to reflect the decline in the price of solar wafers
and polysilicon.
Operating Income (Loss)
|
3Q12
|
2Q12
|
3Q11
|
Q-o-Q%
|
Y-o-Y%
|
Operating
Expenses (US$mln)
|
$43.6
|
$35.9
|
$26.8
|
21.2%
|
62.3%
|
Operating
Income (Loss) (US$mln)
|
($82.8)
|
($34.6)
|
($34.5)
|
-
|
-
|
Operating
Margin
|
(38.0%)
|
(14.9%)
|
(18.2%)
|
-
|
-
|
The sequential increase in operating expenses was primarily due
to (1) an increase in sales and marketing expenses in conjunction
with the Company's expansion of its business outside of
China, (2) an increase in general
and administrative expenses as a result of a US$1.8 million bad debt provision for difficulty
collecting receivables, (3) an impairment loss on long-lived assets
of US$6.1 million related to the
discontinuation of 200 MW of monocrystalline wafer furnace
production capacity and (4) a goodwill impairment charge of
US$5.8 million related to the
Company's solar cell and module business acquired in 2009, offset
by a decrease of US$5.6 million in
research and development ("R&D") expenses in order to save
costs. Operating expenses represented 20.0% of total revenues in Q3
2012, compared to 15.4% in Q2 2012.
Foreign Exchange Gain (Loss)
The Company had a foreign exchange net gain of US$2.1 million in Q3 2012, primarily due to the
appreciation of the euro against the U.S. dollar and the
depreciation of the U.S. dollar against the renminbi ("RMB"). The
Company also recognized a US$0.3
million loss on derivatives in Q3 2012, compared to a loss
of US$0.7 million in Q2 2012.
Net Income (Loss) Attributable to Holders of Ordinary
Shares
|
3Q12
|
2Q12
|
3Q11
|
Net Income
(Loss) (US$mln)
|
($78.6)
|
($34.8)
|
($8.2)
|
Diluted
Earnings (Loss) per Share
|
($0.46)
|
($0.20)
|
($0.05)
|
Diluted
Earnings (Loss) per ADS
|
($0.91)
|
($0.40)
|
($0.09)
|
Business Highlights
Research and Development
ReneSola continued to invest in R&D to enhance the
technology behind its products and manufacturing with the primary
goals of lowering cost and improving efficiency. The Company's
Virtus II products are currently in full production, with average
efficiencies of 15.7%. A 60-cell Virtus II module produces an
average of 255 W. Additionally, the Company's microinverter, Micro
Replus, successfully completed its initial testing phase in
the United States, Australia and Europe. ReneSola has also began research on
small-scale storage systems, with the aim of providing these
products to the market by the middle of next year, as well as began
R&D on developing its own AC-OC optimizer, with the aim of
providing this product to the market by the end of next year.
Solar Module Business
ReneSola delivered 145.3 MW of solar modules, of which 101.7 MW
were Virtus modules, in Q3 2012, down slightly quarter over quarter
due to seasonality. For Q3 2012, the Company's total solar module
selling cost was approximately US$0.65/W, slightly lower compared to Q2 2012.
Gross margin for the Company's solar module business was
approximately 1.0% in Q3 2012. The Company expects to continue to
reduce its solar module manufacturing costs through improvements in
its manufacturing methods as well as a reduction in material costs
and capitalize on the module business's higher margins relative to
solar wafer production. In Q4 2012, the Company expects its total
solar module production cost to decrease to approximately
US$0.57/W and its shipments to
increase to a range of 250 MW to 270 MW.
Solar Wafer Business
ReneSola reached its year-end blended non-silicon solar wafer
processing cost target of US$0.15/W
in Q3 2012, a decrease from US$0.17/W
in Q2 2012 as a result of the Company's continued cost-reduction
efforts. As announced last quarter, the Company has began
manufacturing Virtus A++ wafers, which use new proprietary
manufacturing technology that allows the Company to produce a
larger number of high-efficiency solar wafers per ingot, in its
newest facilities. The Company expects non-silicon solar wafer
processing cost in these new facilities to reach US$0.11/W by the end of 2012. Overall, the
Company expects to further drive down its blended non-silicon solar
wafer processing cost to US$0.12/W by
the end of 2012.
Polysilicon Production
In Q3 2012, ReneSola produced approximately 1,175.7 metric tons
("MT") of polysilicon, an increase from approximately 1,119.4 MT in
Q2 2012. At the end of Q3 2012, the Company had a polysilicon
production capacity of 4,000 MT. The Company expects polysilicon
production capacity to reach 10,000 MT by the end of Q1 2013
through the completion of Phase II of its polysilicon production
plant. On November 1, 2012, the
Company temporarily halted polysilicon production to upgrade its
facilities and equipment, as well as integrate Phase II with Phase
I. Trial production for Phase II is expected to begin in
January 2013.
ReneSola's internal polysilicon production cost decreased to
approximately US$23.57 per kilogram
("kg") at the end of Q3 2012, compared to approximately
US$25.80/kg at the end of Q2 2012, as
a result of improvements in the Company's manufacturing techniques.
The Company expects its polysilicon production facilities to have a
polysilicon production cost below US$18/kg by the end of Q1 2013.
Projects and Systems Business
To date, ReneSola has 40 MW of projects under construction in
China and 6 MW of projects under
construction in Romania. The
Company will selectively evaluate and engage in solar project
opportunities as they arise. China Development Bank has, in the
past, indicated its support for the Company's additional solar
power projects.
Recent Business Developments
- In November 2012, ReneSola
announced that its high-wattage 300 W poly module passed the
potential-induced degradation ("PID") test performed by TUV SUD, a
leading provider of testing, inspection and certification
solutions.
- In November 2012, ReneSola
announced that its solar PV modules sold in the United States are not subject to tariffs
on PV modules made with Chinese-manufactured solar cells, as the
Company sources its cells from countries other than China.
- In November 2012, ReneSola
introduced its new Virtus II multicrystalline modules to the Indian
market at the 6th Renewable Energy India 2012 Expo and announced
the Company had started providing locally produced PV modules to
the Indian market with the expectation of providing 250 MW of
India-made PV modules over a
two-year period.
- In November 2012, ReneSola
announced that its customer Solar Planet Power Inc. ("Solar
Planet"), a U.S. company specializing in PV system solutions for
commercial properties including system due diligence, financing,
design and installation, commissioned several ground and rooftop
projects composed entirely of ReneSola modules at elementary and
high schools in West Jefferson and
Blacklick, Ohio.
- In October 2012, ReneSola invited
several of its U.S. customers to tour its Yixing manufacturing
facilities, which include solar cell and module production lines,
in China's Jiangsu province.
- In October 2012, ReneSola
established its Asia-Pacific,
Middle East and Africa regional sales headquarters in
Singapore.
- In October 2012, ReneSola
announced that, as a result of the Company's diversified supply
chain, its products will not be subject to anti-dumping and
countervailing duties imposed by the U.S. Department of Commerce on
a range of solar imports originating in China.
- In October 2012, ReneSola shipped
10 MW of its high-quality solar modules to saferay GmbH, a leading
large-scale PV power plant installer in Germany.
- In October 2012, ReneSola
launched its new solar module series products, the Virtus II solar
module, the optimized Virtus II Plus 250 solar module and the Micro
Replus microinverter, to the Australian market at All Energy
Australia 2012.
- In September 2012, ReneSola
announced Segen Ltd, the UK's leading value-added distributor of
solar PV products, would be adding a new range of quality PV panels
from ReneSola to its comprehensive portfolio.
- In September 2012, ReneSola
contracted to sell 512 kilowatts ("kW") of its high-quality,
high-efficiency solar modules to Cummings Properties, one of the
most prominent full-service commercial real estate development and
property management organizations in Massachusetts, for use on the rooftop solar
system of Cummings Center, a two-million square foot corporate
campus and retail center in Beverly,
Massachusetts.
- In September 2012, ReneSola
announced its high-wattage 300 W and 305 W 72-cell poly line was
ready for shipment from its east and west coast warehouses in
the United States.
- In September 2012, ReneSola
released its microinvertor, Micro Replus, which is available as a
standalone microinverter or integrated with a ReneSola panel as a
turnkey AC module.
- In August 2012, ReneSola agreed
to sell 4.6 MW of its 255 W poly modules to Solar Planet.
Liquidity and Capital Resources
Net cash outflow from operating activities was US$46.0 million for Q3 2012, compared to net cash
inflow of US$14.2 million in Q2 2012.
Net cash and cash equivalents plus restricted cash were
US$335.2 million at the end of Q3
2012, compared to US$394.2 million at
the end of Q2 2012.
Total debt was US$850.3 million at
the end of Q3 2012, compared to US$821.3
million at the end of Q2 2012, excluding US$111.6 million of convertible notes due
March 15, 2018, unless repurchased or
converted at an earlier date. Short-term borrowings were
US$715.8 million in Q3 2012, an
increase from US$691.1 million in Q2
2012.
Capital expenditures were US$30.6
million for Q3 2012, primarily for the Company's PV project
business, as well as expanding its polysilicon production capacity
and improving its manufacturing processes.
2012 Capacity Expansion Plans and Related CAPEX
The Company expects to spend approximately US$14.8 million in Q4 2012 to expand its
polysilicon production capacity and integrate Phase II of its
Sichuan polysilicon production
plant, as well as build up its horizontal and project
businesses.
Amendment of 2007 Employee Stock Option Plan to Establish New
Exercise Price
In Q3 2012, ReneSola's board of directors approved the amendment
of 7,835,600 stock options previously granted under the 2007
employee stock option plan to establish a new exercise price for
such stock options held by current employees equal to $1.47 per ADS, which was the closing price of the
Company's ADSs on August 8, 2012.
Outlook
For Q4 2012, the Company expects total solar wafer and module
shipments to be in the range of 635 MW to 675 MW, with solar module
shipments expected to be in the range of 250 MW to 270 MW. Revenues
are expected to be in the range of US$240
million to US$260 million and gross margin is expected to be
positive in Q4 2012.
For the full year of 2012, the Company expects total solar wafer
and module shipments to be close to 2.2 GW.
Conference Call Information
ReneSola's management will host an earnings conference call on
Friday, November 30, 2012 at
8 am U.S. Eastern Time (9 pm Beijing/Hong
Kong time).
Dial-in details for the earnings conference call are as
follows:
U.S. /
International:
|
+1-718-354-1231
|
Hong
Kong:
|
+852-2475-0994
|
Please dial in 10 minutes before the call is scheduled to begin
and provide the passcode to join the call. The passcode is
"ReneSola Call".
A replay of the conference call may be accessed by phone at the
following number until December 7,
2012:
International:
|
+1-646-254-3697
|
Passcode:
|
73036035
|
Additionally, a live and archived webcast of the conference call
will be available on the Investor Relations section of ReneSola's
website at http://www.renesola.com.
About ReneSola
Founded in 2005, ReneSola (NYSE:SOL) is a leading global
manufacturer of high-efficiency solar PV modules and wafers.
Leveraging its proprietary technologies, economies of scale and
technical expertise, ReneSola uses in-house virgin polysilicon and
a vertically integrated business model to provide customers with
high-quality, cost-competitive products. ReneSola solar modules
have scored top PVUSA Test Conditions (PTC) ratings with high
annual kilowatt-hour output, according to the California Energy
Commission (CEC). ReneSola solar PV modules can be found in
projects ranging in size from a few kilowatts to multi-megawatts in
markets around the world, including the
United States, Germany,
Italy, Belgium, China, Greece, Spain
and Australia. For more
information, please visit www.ReneSola.com.
Safe Harbor Statement
This press release contains statements that constitute
''forward-looking" statements within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and as defined in the
U.S. Private Securities Litigation Reform Act of 1995. Whenever you
read a statement that is not simply a statement of historical fact
(such as when the Company describes what it "believes," "expects"
or "anticipates" will occur, what "will" or "could" happen, and
other similar statements), you must remember that the Company's
expectations may not be correct, even though it believes that they
are reasonable. The Company does not guarantee that the
forward-looking statements will happen as described or that they
will happen at all. Further information regarding risks and
uncertainties that could cause actual results to differ materially
from those in the forward-looking statements is included in the
Company's filings with the U.S. Securities and Exchange Commission,
including the Company's annual report on Form 20-F. The Company
undertakes no obligation, beyond that required by law, to update
any forward-looking statement to reflect events or circumstances
after the date on which the statement is made, even though the
Company's situation may change in the future.
For investor and media inquiries, please contact:
In China:
Mr. Tony Hung
ReneSola Investor Relations
Tel: +86-573-8473-9011
Email: ir@renesola.com
Mr. Derek Mitchell
Ogilvy Financial, Beijing
Tel: +86-10-8520-3073
Email: sol@ogilvy.com
In the United
States:
Ms. Jessica Barist Cohen
Ogilvy Financial, New York
Tel: +1-646-460-9989
Email: sol@ogilvy.com
RENESOLA LTD
|
Unaudited Consolidated Balance
Sheet
|
(US
dollars in thousands)
|
|
|
Sep
30,
|
|
Jun
30,
|
|
Sep
30,
|
|
2012
|
|
2012
|
|
2011
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash
and cash equivalents
|
265,421
|
|
314,229
|
|
406,280
|
Restricted cash
|
69,749
|
|
79,939
|
|
43,999
|
Available-for-sale investment
|
-
|
|
-
|
|
1,837
|
Accounts receivable, net of allowances for
doubtful accounts
|
139,473
|
|
211,184
|
|
107,856
|
Inventories
|
236,477
|
|
209,765
|
|
218,777
|
Advances to suppliers-current
|
17,757
|
|
26,694
|
|
29,674
|
Amounts due from related parties
|
828
|
|
1,358
|
|
352
|
Value added tax recoverable
|
50,270
|
|
43,953
|
|
62,499
|
Income tax recoverable
|
1,689
|
|
2,614
|
|
4,991
|
Prepaid expenses and other current
assets
|
27,801
|
|
15,056
|
|
13,330
|
Project assets
|
21,622
|
|
18,527
|
|
-
|
Prepayment for investment
|
1,298
|
|
-
|
|
-
|
Deferred convertible bond issue
costs-current
|
784
|
|
784
|
|
923
|
Derivative assets
|
269
|
|
24
|
|
6,676
|
Assets held-for-sale
|
-
|
|
6,103
|
|
3,248
|
Deferred tax assets-current
|
28,725
|
|
20,535
|
|
22,636
|
Total current assets
|
862,163
|
|
950,765
|
|
923,078
|
|
|
|
|
|
|
Property, plant and equipment, net
|
1,021,147
|
|
1,003,293
|
|
911,190
|
Prepaid land use right
|
48,883
|
|
48,488
|
|
49,937
|
Deferred tax assets-non-current
|
45,032
|
|
39,195
|
|
11,256
|
Deferred convertible bond issue
costs-non-current
|
1,922
|
|
2,118
|
|
3,189
|
Advances to suppliers-non-current
|
10,191
|
|
12,490
|
|
22,128
|
Advances for purchases of property, plant and
equipment
|
43,198
|
|
46,305
|
|
25,103
|
Other long-term assets
|
11,570
|
|
10,597
|
|
6,253
|
Goodwill
|
324
|
|
6,041
|
|
5,642
|
Total assets
|
2,044,430
|
|
2,119,292
|
|
1,957,776
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Short-term borrowings
|
715,825
|
|
691,065
|
|
523,530
|
Accounts payable
|
395,637
|
|
404,021
|
|
209,493
|
Advances from customers-current
|
35,574
|
|
46,714
|
|
59,810
|
Amounts due to related parties
|
3,291
|
|
9,455
|
|
-
|
Other current liabilities
|
105,795
|
|
108,756
|
|
112,327
|
Income tax payable
|
1,472
|
|
2,784
|
|
3,611
|
Deferred tax liabilities
|
1,057
|
|
1,099
|
|
3,438
|
Derivative liabilities
|
1,766
|
|
765
|
|
6,657
|
Total current
liabilities
|
1,260,417
|
|
1,264,659
|
|
918,866
|
|
|
|
|
|
|
Convertible bond payable-non-current
|
111,616
|
|
111,616
|
|
130,800
|
Long-term borrowings
|
134,451
|
|
130,237
|
|
167,830
|
Advances from customers-non-current
|
38,668
|
|
43,486
|
|
57,389
|
Warranty
|
8,124
|
|
7,006
|
|
12,137
|
Deferred gain
|
29,925
|
|
29,093
|
|
-
|
Other long-term liabilities
|
12,171
|
|
12,234
|
|
39,624
|
Total liabilities
|
1,595,372
|
|
1,598,331
|
|
1,326,646
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
Common shares
|
421,452
|
|
420,370
|
|
422,314
|
Additional paid-in
capital
|
4,628
|
|
4,666
|
|
3,150
|
Treasury stock
|
-
|
|
-
|
|
(1,944)
|
Retained earnings (accumulated
losses)
|
(48,745)
|
|
29,862
|
|
141,553
|
Accumulated other comprehensive
income
|
71,200
|
|
65,709
|
|
66,057
|
Total equity attribute to ReneSola
Ltd
|
448,535
|
|
520,607
|
|
631,130
|
Noncontrolling interest
|
523
|
|
354
|
|
-
|
Total shareholders'
equity
|
449,058
|
|
520,961
|
|
631,130
|
|
|
|
|
|
|
Total liabilities and shareholders'
equity
|
2,044,430
|
|
2,119,292
|
|
1,957,776
|
RENESOLA LTD
|
Unaudited Consolidated Statements of Income
Data
|
(US dollar
in thousands, except ADS and share data)
|
|
|
Three
Months Ended
|
Nine
Months Ended
|
|
Sep 30,
2012
|
|
Jun 30,
2012
|
|
Sep 30,
2011
|
|
Sep 30,
2012
|
|
Sep 30,
2011
|
|
|
|
|
|
|
|
|
|
|
Net
revenues
|
218,155
|
|
233,038
|
|
189,062
|
|
662,678
|
|
797,588
|
Cost of
revenues
|
(257,381)
|
|
(231,735)
|
|
(196,716)
|
|
(708,634)
|
|
(658,165)
|
Gross
profit (loss)
|
(39,226)
|
|
1,303
|
|
(7,654)
|
|
(45,956)
|
|
139,423
|
GP%
|
(18.0%)
|
|
0.6%
|
|
(4.0%)
|
|
(6.9%)
|
|
17.5%
|
|
|
|
|
|
|
|
|
|
|
Operating
(expenses) income:
|
|
|
|
|
|
|
|
|
|
Sales and
marketing
|
(9,741)
|
|
(7,169)
|
|
(5,064)
|
|
(22,549)
|
|
(11,746)
|
General
and administrative
|
(14,985)
|
|
(11,260)
|
|
(12,157)
|
|
(38,808)
|
|
(30,281)
|
Research
and development
|
(8,087)
|
|
(13,690)
|
|
(12,152)
|
|
(33,490)
|
|
(35,509)
|
Other
operating income (expenses)
|
1,116
|
|
(3,539)
|
|
2,525
|
|
(2,280)
|
|
2,343
|
Impairment
of long-lived assets
|
(6,104)
|
|
(291)
|
|
-
|
|
(6,395)
|
|
-
|
Goodwill
impairment
|
(5,783)
|
|
-
|
|
-
|
|
(5,783)
|
|
-
|
Total
operating expenses
|
(43,584)
|
|
(35,949)
|
|
(26,848)
|
|
(109,305)
|
|
(75,193)
|
|
|
|
|
|
|
|
|
|
|
Income
(loss) from operations
|
(82,810)
|
|
(34,646)
|
|
(34,502)
|
|
(155,261)
|
|
64,230
|
|
|
|
|
|
|
|
|
|
|
Non-operating (expenses) income:
|
|
|
|
|
|
|
|
|
|
Interest
income
|
1,668
|
|
1,264
|
|
3,587
|
|
5,738
|
|
5,675
|
Interest
expense
|
(12,821)
|
|
(12,550)
|
|
(10,018)
|
|
(37,679)
|
|
(26,148)
|
Foreign
exchange gain (loss)
|
2,054
|
|
(4,523)
|
|
(865)
|
|
(1,668)
|
|
4,796
|
Other-than-temporary impairment loss on
available-for-sale investment
|
-
|
|
-
|
|
(1,705)
|
|
-
|
|
(4,371)
|
Gain on
repurchase of convertible bonds
|
-
|
|
-
|
|
20,153
|
|
-
|
|
20,153
|
(Loss)
gain on derivative, net
|
(302)
|
|
(669)
|
|
10,055
|
|
(935)
|
|
(19,092)
|
Total
non-operating (expenses) income
|
(9,401)
|
|
(16,478)
|
|
21,207
|
|
(34,544)
|
|
(18,987)
|
Income
(loss) before income tax,
noncontrolling interests
|
(92,211)
|
|
(51,124)
|
|
(13,295)
|
|
(189,805)
|
|
45,243
|
Income tax
benefit (expense)
|
13,586
|
|
16,321
|
|
5,145
|
|
36,156
|
|
(8,218)
|
Net
income (loss)
|
(78,625)
|
|
(34,803)
|
|
(8,150)
|
|
(153,649)
|
|
37,025
|
|
|
|
|
|
|
|
|
|
|
Less: Net
loss attributed to noncontrolling interests
|
(18)
|
|
(16)
|
|
-
|
|
(45)
|
|
-
|
Net
income (loss) attributed to holders of
ordinary shares
|
(78,607)
|
|
(34,787)
|
|
(8,150)
|
|
(153,604)
|
|
37,025
|
|
|
|
|
|
|
|
|
|
|
Earnings
per share
|
|
|
|
|
|
|
|
|
|
Basic
|
(0.46)
|
|
(0.20)
|
|
(0.05)
|
|
(0.89)
|
|
0.21
|
Diluted
|
(0.46)
|
|
(0.20)
|
|
(0.05)
|
|
(0.89)
|
|
0.19
|
|
|
|
|
|
|
|
|
|
|
Earnings
per ADS
|
|
|
|
|
|
|
|
|
|
Basic
|
(0.91)
|
|
(0.40)
|
|
(0.09)
|
|
(1.78)
|
|
0.43
|
Diluted
|
(0.91)
|
|
(0.40)
|
|
(0.09)
|
|
(1.78)
|
|
0.37
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares used in computing
earnings per share
|
|
|
|
|
|
|
|
|
Basic
|
172,773,664
|
|
172,773,664
|
|
173,752,298
|
|
172,773,664
|
|
173,914,549
|
Diluted
|
172,773,664
|
|
172,773,664
|
|
173,752,298
|
|
172,773,664
|
|
198,308,624
|
|
|
|
|
|
|
|
|
|
|
|
RENESOLA LTD
|
Unaudited Condensed Consolidated Statement of
Comprehensive Income
|
(US dollar
in thousands)
|
|
|
|
Three
Months ended
|
|
Nine
Months Ended
|
|
|
Sep 30,
2012
|
|
Jun 30,
2012
|
|
Sep 30,
2011
|
|
Sep 30,
2012
|
|
Sep 30,
2011
|
Net
income (loss)
|
|
(78,625)
|
|
(34,803)
|
|
(8,150)
|
|
(153,648)
|
|
37,025
|
Other
comprehensive income, net of tax
|
|
|
|
|
|
|
|
|
|
|
Foreign
exchange translation adjustment
|
|
5,490
|
|
(5,466)
|
|
10,575
|
|
(446)
|
|
26,805
|
Change in
fair value of available for sale investment
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,330
|
Changes in
fair value of cash flow hedges
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,603
|
Other
comprehensive income, net of tax
|
|
5,490
|
|
(5,466)
|
|
10,575
|
|
(446)
|
|
30,738
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss)
|
|
(73,135)
|
|
(40,269)
|
|
2,425
|
|
(154,094)
|
|
67,763
|
Less:
comprehensive income (loss) attributable to
non-controlling interest
|
|
(18)
|
|
(16)
|
|
-
|
|
(45)
|
|
-
|
Comprehensive income (loss) attributable
to ReneSola
|
|
(73,117)
|
|
(40,253)
|
|
2,425
|
|
(154,049)
|
|
67,763
|
RENESOLA LTD
|
Unaudited Consolidated Statements of Cash
Flow
|
(US dollar
in thousands)
|
|
|
|
Nine
Months Ended
|
|
|
Sep 30,
2012
|
|
Sep 30,
2011
|
|
|
|
|
|
|
|
|
|
|
Operating activity:
|
|
|
|
|
Net
income (loss)
|
|
(153,648)
|
|
37,025
|
Adjustment to reconcile net income to net cash used in operating
activities:
|
-
|
|
-
|
Inventory write-down
|
|
58,606
|
|
22,747
|
Depreciation and amortization
|
|
69,612
|
|
59,338
|
Amortization of deferred convertible bond issuances costs and
premium
|
|
588
|
|
669
|
Allowance of doubtful receivables and advance to suppliers and
prepayment
for purchases of property, plant and
equipment
|
1,819
|
|
(1,324)
|
Loss on derivatives
|
|
935
|
|
18,900
|
Share-based compensation
|
|
1,599
|
|
3,399
|
Impairment of long-lived assets
|
|
6,395
|
|
192
|
Loss on disposal of long-lived assets
|
|
226
|
|
331
|
Impairment of goodwill
|
|
5,783
|
|
-
|
Other-than-temporary impairment loss on available-for-sale
investment
|
|
-
|
|
4,371
|
Gain on repurchase of convertible bonds
|
|
-
|
|
(20,153)
|
Reversal of purchase commitment
|
|
(3,940)
|
|
-
|
Provision for litigation
|
|
1,726
|
|
-
|
|
|
|
|
|
Changes
in assets and liabilities:
|
|
|
|
|
Accounts receivable
|
|
(29,173)
|
|
(35,407)
|
Inventories
|
|
(140,572)
|
|
(65,130)
|
Project assets
|
|
(21,622)
|
|
-
|
Advances to suppliers
|
|
5,856
|
|
(9,743)
|
Amounts due from related parties
|
|
3,736
|
|
25
|
Value added tax recoverable
|
|
(8,315)
|
|
(16,540)
|
Prepaid expenses and other current assets
|
|
(6,545)
|
|
3,276
|
Prepaid land use rights
|
|
201
|
|
1,597
|
Accounts payable
|
|
159,823
|
|
(17,228)
|
Advances from customers
|
|
(32,047)
|
|
(18,439)
|
Income tax payables
|
|
3,613
|
|
-
|
Other current liabilities
|
|
(3,782)
|
|
(11,111)
|
Other long-term liabilities
|
|
(708)
|
|
-
|
Deferred tax assets
|
|
(34,854)
|
|
(6,712)
|
Accrued warranty cost
|
|
(4,704)
|
|
3,072
|
Net
cash (used in) operating activities
|
|
(119,392)
|
|
(46,845)
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
Purchases of property, plant and equipment
|
|
(88,194)
|
|
(84,491)
|
Advances for purchases of property, plant and equipment
|
|
(26,921)
|
|
(16,564)
|
Purchases of other long-lived assets
|
|
(1,064)
|
|
(121)
|
Proceeds from disposal of property, plant and equipment
|
|
95
|
|
-
|
Cash received from government subsidy
|
|
1,448
|
|
1,070
|
Changes in restricted cash
|
|
(11,268)
|
|
(8,864)
|
Cash consideration for acquisition, net of cash received
|
|
(1,298)
|
|
(1,102)
|
Net
proceeds from (pay to) settlement of derivatives
|
|
1,449
|
|
(8,388)
|
Net cash used in investing
activities
|
|
(125,753)
|
|
(118,460)
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
Proceeds from bank borrowings
|
|
839,380
|
|
648,194
|
Repayment of bank borrowings
|
|
(706,355)
|
|
(498,319)
|
Cash paid for issuance costs
|
|
-
|
|
(7,150)
|
Proceeds from exercise of stock options
|
|
-
|
|
148
|
Contribution from noncontrolling interests
|
|
411
|
|
-
|
Cash paid for repurchase of convertible bonds
|
|
-
|
|
(46,714)
|
Cash paid for ADSs repurchase
|
|
-
|
|
(1,944)
|
Proceeds from issuance of convertible bonds
|
|
-
|
|
200,000
|
Refund (purchase) of conversion spread hedges
|
|
-
|
|
(23,842)
|
Net
cash provided by financing activities
|
|
133,436
|
|
270,373
|
|
|
|
|
|
Effect of
exchange rate changes
|
|
(1,909)
|
|
10,510
|
|
|
|
|
|
Net
(decrease) increase in cash and cash equivalents
|
|
(113,618)
|
|
115,578
|
Cash and
cash equivalents, beginning of year
|
|
379,039
|
|
290,702
|
Cash
and cash equivalents, end of year
|
|
265,421
|
|
406,280
|
SOURCE ReneSola Ltd.